Davis Index launches world’s first decentralized exchange contracts for recycled steel

Toronto, Canada, 6th May 2021, ZEXPRWIRE, Commodity price reporting agency, Davis Index, has announced the launch of the world’s first decentralized futures contracts for recycled steel which will list on Mettalex, a decentralized exchange for commodities trading, later this month.

Mettalex launched its blockchain-agnostic exchange which is available on Ethereum and Binance Smart Chain in February 2021. The exchange incorporates Fetch.ai technology and enables traders to take leveraged long or short positions against a number of commodities including Steel Recyclables, Zinc, Iron Ore, and spreads for digital currency. All of these are unique markets in the decentralized finance (DeFi) space.

Davis Index is a tech-led proprietary market price data provider for the global manufacturing supply chain. The company carries six price reporting platforms in its portfolio which include the world’s only market intelligence platform built solely for the manufacturing chain.

Davis Index will launch exchange-settled daily contracts for bulk exports of recycled steel, also known as ferrous scrap, shipped to Turkey and for containerized shredded scrap shipped to India. The contracts will launch on Mettalex on 31 May.

The Turkish contract will settle on a basis of Davis Index US-origin HMS 1/2 (80:20) bulk cfr Turkey index. The Indian contract will settle on a basis of Davis Index containerized shredded cfr Nhava Sheva index.

Turkey is the world’s largest importer of ferrous scrap shipping in bulk vessels and sources most of its supply from Canada, Europe, Russia, UK, Ukraine, and the USA. The Indian subcontinent is the world’s largest importer of containerized ferrous scrap and sources its supply from almost every region of the world.

“The ability to hedge the numerous recyclables grades and specialty finished products that make for most of the infrastructure around us has long been a need in our industry,” said Sean Davidson, CEO of Davis Index. “The current system provides the industry with less than a handful of instruments and the basis risk and costs are just unworkable for most companies. Mettalex is finally answering the call for a decentralized exchange that can list any commodity. We look forward to providing our price benchmarks on the Mettalex platform to give the manufacturing, demolition, and metal producing sectors the precise hedging instruments they need.”

Today’s hedging tools remain largely inaccessible by small and medium-sized enterprises due to high costs. Additionally, commodity market participants face obstacles related to front running, poor liquidity, price manipulation, and loss of value in the form of margin calls. Mettalex solves these problems by allowing physical asset holders a cost, capital, and risk-efficient access to commodities markets, enabled by DeFi liquidity, and automated by blockchain-based smart contracts.  

“A critical byproduct of the Mettalex platform is the transparency it will bring to the pricing data around the world’s most valuable commodities,” explains CEO, Humayun Sheikh. “By making this type of market intelligence and the ability to trade more readily accessible, Mettalex aims to bring one of the oldest forms of trade in human history into the present century. With Mettalex we aim to align the incentives of traders, stablecoin liquidity providers, and physical commodity holders to create a one-of-the-kind tool that is accessible to anyone on this planet, 24/7/365.”  

About Davis Index

Davis Index is an independent price reporting agency that provides the manufacturing supply chain with price benchmarks on base metals, steel, stainless steel, alloys, and raw materials. Its 1,300 indexes cover metals in over 40 countries. For more information, please visit www.davisindex.com. 

About Mettalex

Mettalex is a decentralized commodities derivatives trading platform powered by Fetch.ai. Founded with the mission to bring the $20 trillion commodities market on-chain, Mettalex provides the technology needed to scale the DeFi ecosystem to meet the needs of today’s global financial markets. For more information, please visit https://www.mettalex.com.

Media Contact

Company Name: Davis Index
Contact Person: Brian Kelly
Email: brian.kelly@davisindex.com
Phone: 647-485-1045
Address: 18 Yorkville, Toronto,
State: Ontario
Country: Canada
Website: https://davisindex.com/

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